UK lawmaker tells parliament UK can be 'home' for cryptocurrencies

Matt Hancock, former Secretary of State for Health and Social Care and now a UK MP, is urging the House of Commons to make the UK a “home” for cryptocurrencies.

Hancock has been an MP for West Suffolk since 2010, but resigned as health secretary in mid-2021 following controversy over an alleged extramarital affair that breached Covid-19 guidelines. That said, his endorsement, while welcomed by the industry, may not have the cachet it once did.

Following his speech in the House of Commons on Jan. 27, Hancock highlighted the disruptive potential of cryptocurrencies and fintech in a tweet, stating:

"The UK can be home to new innovations such as fintech and cryptocurrencies. Done right, we can increase transparency and lead the way in new technologies that change the world."

In his speech, he pointed to the benefits of cryptocurrency and fintech adoption in terms of stimulating the economy and even reducing financial crime, and urged the government to "ensure" that progressive policies are in place in these areas.

“(Fintech and cryptocurrencies) can not only be an economic driver, but also help reduce fraud and financial crime because it brings transparency,” he said, adding, “These innovations have the potential to disrupt the financial industry, as Social media disrupted communications, or online shopping disrupted retail.”

Hancock’s comments come just weeks after several MPs and members of the House of Lords jointly formed the Cryptocurrency and Digital Assets Group, which aims to ensure that upcoming industry regulations support innovation, rather than stifle it.

The group is chaired by Scottish National Party MP Lisa Cameron, who noted before and after the group's formation: "We are at a pivotal moment for the industry as global policy makers are also now reviewing their approach to cryptocurrencies and how they should be regulated. currency."

Earlier this week, former U.K. chancellor of the exchequer Philip Hammond said it was “quite shocking, frankly,” that the U.K. lags behind the European Union in providing clear regulation of the crypto space.

Hammond warned that if the UK government fails to catch up in 2022 and is "significantly behind the curve" next year, top cryptocurrency and blockchain technology companies based in the UK will seek to move their headquarters to take a closer look at cryptocurrencies. Countries with a friendly stance, such as Germany, Switzerland, and Monaco.

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